# Corporation Tax Act 2010, Section 393: Qualifying 75% subsidiaries

Extent: E+W+S+N.I.

(1) A company (“B”) is a principal company of A if—
(a) A is a qualifying 75% subsidiary of B, and
(b) B is not a qualifying 75% subsidiary of another company.
(2) There is a relevant change in the relationship between A and B (as a principal company) on any day if A ceases to be a qualifying 75% subsidiary of B on that day.
(3) A company (“C”) is a principal company of A if—
(a) A is a qualifying 75% subsidiary of B,
(b) B is a qualifying 75% subsidiary of C, and
(c) C is not a qualifying 75% subsidiary of another company.
(4) There is a relevant change in the relationship between A and C (as a principal company) on any day if—
(a) A ceases to be a qualifying 75% subsidiary of B on that day, or
(b) B ceases to be a qualifying 75% subsidiary of C on that day.
(5) If C is a qualifying 75% subsidiary of another company (“D”), D is a principal company of A unless D is a qualifying 75% subsidiary of another company, and so on.
(6) Accordingly, there is a relevant change in the relationship between A and a principal company of A on any day if—
(a) in determining which company is a principal company, regard is had to any company which is a qualifying 75% subsidiary of another, and
(b) that company ceases to be a qualifying 75% subsidiary of the other on that day.
(7) This section is supplemented by section 398 (“qualifying 75% ... subsidiary” etc).

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Source: https://www.legislation.gov.uk/ukpga/2010/4/section/393 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2010/section-393
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.